PENNICHUC kK” 25 MANCHESTER STREET
PO BOX 1947
MERRIMACK, NH 03054-1947
(603) 882-5191
FAX (603) 913-2305
WWW.PENNICHUCK.COM
VIA HAND DELIVERY
JECEIVE
June 28, 2018 JUN 2 8 2018
fon, f
Mr. Steven A. Bolton [By
Corporation Counsel
City of Nashua
229 Main Street
Nashua, NH 03060
Re: — Request for Approval of Loans from (1) the New Hampshire Drinking Water
Revolving Loan Fund Program to Pennichuck East Utility, Inc. and (2) the New
Hampshire Drinking Water and Groundwater Trust Fund to Pennichuck Water
Works, Inc.
Dear Attorney Bolton:
Introduction. As you know, the City of Nashua, New Hampshire (the “City’’) is the sole
corporate shareholder of Pennichuck Corporation (“Pennichuck”). The City has been the sole
shareholder since the acquisition of Pennichuck on January 25, 2012.
The purpose of this letter is to request that the City, acting in its capacity as sole shareholder,
approve several resolutions authorizing two of Pennichuck’s regulated public water utility
(“PWW”), to borrow funds from the State of New Hampshire pursuant to the State Drinking
Water Revolving Loan Fund Program (the “SRF Program”) and the New Hampshire Drinking
corm
Water and Groundwater Trust Fund (the “Trust Fund”).
Background. As part of the City’s acquisition of Pennichuck, in accordance with special
legislation enacted by the State Legislature, and as unanimously approved by the Mayor and
Board of Aldermen on January 11, 2011, the corporate structure of Pennichuck and its utility
subsidiaries was retained. This corporate structure was retained for several reasons. First, the
Mayor and Board of Aldermen desired to maintain stability and continuity for customers and
employees of the Pennichuck utilities and the communities they serve. Second, retaining the
corporate structure provided continuity for the existing relationships with regulatory agencies
and financial/banking partners. Third, the Mayor and Board of Aldermen unanimously agreed
eet
